How to Keep Your Health Insurance From Lapsing After a Divorce

Divorce can significantly impact health insurance for a spouse covered under the other spouse’s plan. In New York, health insurance coverage cannot be terminated while a divorce is pending without the court’s permission or the written consent of the other party. However, most plans cease covering a spousal beneficiary immediately upon divorce. If you are in this status, you need to take proactive steps to avoid being left without insurance.

When a divorce case is filed, certain court orders go into effect. Among other things, they restrain both parties from making significant changes to insurance policies, including canceling or modifying health insurance. If you are covered under your spouse’s employer-sponsored plan, you should remain insured until the divorce is finalized. However, it’s important to stay vigilant for any plan changes and to let your attorney know so that any violations of the court order can be addressed promptly.

Once the judgment of divorce is entered, your coverage under your spouse’s employer-sponsored plan ends, as you no longer qualify as a dependent under their policy. However, if your spouse’s company has 20 or more employees, you can apply under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for continuation coverage. Under COBRA, you can remain on your spouse’s plan for up to 36 months, but you will need to pay the full premium, including the portion your spouse’s employer previously subsidized, plus a 2 percent administrative fee. While COBRA can be expensive, it ensures uninterrupted coverage while you seek a long-term solution.

If COBRA is not an option or is too costly, you can explore other avenues for health insurance. You can apply for a plan through the Health Insurance Marketplace (healthcare.gov). Divorce is a “qualifying life event” entitling you to a special enrollment period (SEP), which means you can enroll in a new plan outside of the usual time window. Subsidies may be available based on your income level.

Additionally, if you are employed and your employer offers health insurance, you can enroll in their plan as a newly eligible individual due to the divorce. You will likely be entitled to an SEP. Be sure to check with your employer’s human resources department for details and enrollment deadlines.

Health insurance can be a negotiable term in your divorce settlement agreement. If maintaining coverage is a significant concern, you can request that your spouse contribute to your health insurance costs post-divorce, either directly or as part of spousal support (maintenance). This is not necessarily the norm and the court will determine same on a case by case basis. 

In cases involving children, health insurance is often addressed as part of child support agreements. Both parties are required to share the cost to maintain the children on a policy pro rata. This would be in addition to child support. 

Maintaining health insurance after a divorce in New York requires proactive planning and awareness of your options. An experienced divorce attorney can provide guidance tailored to your specific situation.

The attorneys at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP in St. James, New York are adept at finding creative solutions for divorce issues. We serve clients all across Long Island. To discuss how we can help you, contact us online or call us at 631-360-0400.